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91_HB0087ham001
LRB9100600LDpkam
1 AMENDMENT TO HOUSE BILL 87
2 AMENDMENT NO. . Amend House Bill 87 by replacing the
3 title with the following:
4 "AN ACT in relation to tobacco products, creating a new
5 Act, amending certain named Acts, and repealing certain
6 Acts."; and
7 by replacing everything after the enacting clause with the
8 following:
9 "Section 1. Short title. This Act may be cited as the
10 Illinois Underage Purchase, Possession, and Sales Prevention
11 Act of 1999.
12 Section 5. Definitions. For purposes of this Act:
13 "Distribute" means to give, deliver, sell, furnish, or
14 provide tobacco products, including tobacco product samples,
15 to the ultimate consumer.
16 "Enforcement agency" means the Illinois Liquor Control
17 Commission.
18 "Inspection" means the inspection described in Section
19 1926(b) of the Federal Public Health Service Act (42 U.S.C.
20 300x-26(b)).
21 "Person" means any natural person, company, corporation,
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1 firm, partnership, organization, or other legal entity.
2 "Proof of age" means a driver's license or other
3 documentary or written evidence that purports to establish
4 that the person is 18 years of age or older.
5 "Sample" means a tobacco product distributed for members
6 of the general public at no cost for purposes of promoting
7 the product.
8 "Seller" means any person who distributes tobacco
9 products for commercial purposes.
10 "Tobacco product" means any product that contains tobacco
11 and is intended for human consumption.
12 "Vending machine" means any mechanical, electric, or
13 electronic self-service device which, upon insertion of
14 money, tokens, or any other form of payment, automatically
15 dispenses tobacco products.
16 Section 10. Prohibition of sale or distribution of
17 tobacco products to persons under 18 years of age.
18 (a) No person shall sell, buy for, or distribute any
19 tobacco product to another person who has not attained 18
20 years of age; provided however, that it shall not be unlawful
21 to distribute a tobacco product to any employee when required
22 in the performance of the employee's duties.
23 (b) It shall be an affirmative defense to any action
24 brought pursuant to this Section if the defendant shows any
25 one of the following:
26 (1) That the purchaser or recipient falsely
27 represented that he or she had attained the age of 18;
28 (2) That the purchaser or recipient presented
29 purported proof of age showing that he or she had
30 attained the age of 18;
31 (3) That the appearance of the purchaser or
32 recipient was such that an ordinary and prudent person
33 would believe that the purchaser had attained the age of
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1 18; or
2 (4) That the sale was made in good faith and
3 reasonable reliance on the purported proof of age and
4 appearance of the purchaser or recipient in the belief by
5 the seller that the purchaser or recipient had attained
6 the age of 18.
7 (c) A person who distributes tobacco products at retail
8 shall not be convicted of a violation of this Section unless
9 the person under 18 years of age who purchased, attempted to
10 purchase, or possessed tobacco products has been convicted
11 under Section 15, provided such purchase, attempt to
12 purchase, or possession did not occur pursuant to Section 45.
13 (d) Any person with a license under Section 40 and any
14 employee or agent of such person who violates this Section is
15 guilty of a petty offense and for the first offense shall be
16 fined $200, for the second offense in a 12-month period,
17 $400, and for the third or subsequent offense in a 12-month
18 period, $500. Any other person who sells or distributes
19 tobacco products in violation of this Section is guilty of a
20 petty offense and for the first offense shall be fined $200,
21 for the second offense in a 12-month period, $400, and for
22 the third or subsequent offense in a 12-month period, $500.
23 (e) For purposes of determining the liability of a
24 person controlling franchises or business operations in
25 multiple locations for a second or subsequent violation of
26 this Section, each individual franchise or business location
27 shall be deemed a separate entity.
28 Section 15. Juvenile purchase, possession, and
29 consumption of tobacco.
30 (a) No person under 18 years of age shall attempt to
31 purchase, purchase, accept receipt of, possess, use, or offer
32 to any person any purported proof of age that is false,
33 fraudulent, or not actually his or her own, for the purpose
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1 of purchasing or receiving any tobacco product; provided,
2 however, that it shall not be unlawful for such a person to
3 accept receipt of a tobacco product from an employer when
4 required in the performance of the employee's duties.
5 (b) Any person under 18 years of age who violates this
6 Section shall be guilty of a petty offense and shall be
7 penalized as follows:
8 (1) For the first offense, a warning.
9 (2) For the second offense, a term of up to 25
10 hours of community service. The court may require a
11 person who is convicted of or placed on probation for a
12 second offense to attend a smoker's education program, if
13 such a program is available in the jurisdiction where the
14 offender resides. Time spent in attendance at a smoker's
15 education program shall be credited against any community
16 service time imposed for any second offense violation of
17 this Act.
18 (3) For the third or a subsequent offense, a term
19 of up to 25 hours of community service and suspension of
20 the violator's driver's license for up to 60 days. If a
21 person who commits a third or subsequent offense is not
22 eligible for a driver's license, he or she shall be
23 ineligible to apply for a driver's license for up to 60
24 days after he or she would otherwise become eligible for
25 a driver's license. The court may require a person who is
26 convicted or placed on probation for a third or
27 subsequent offense to attend a smoker's education
28 program, if such a program is available in the
29 jurisdiction where the person resides. Time spent in
30 attendance in a smoker's education program shall be
31 credited against any community service time imposed for
32 the violation.
33 In geographic areas in which educational programs
34 addressing the risks of tobacco consumption are available, a
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1 court may also require participation in such an educational
2 program.
3 Section 20. Training of retail clerks.
4 (a) Every person engaged in the business of selling
5 tobacco products at retail shall notify each individual
6 employed by that person as a retail sales clerk that State
7 law prohibits the sale or distribution of tobacco products to
8 any person under 18 years of age and out-of-package sales of
9 cigarettes and smokeless tobacco. This notice shall be
10 provided before the individual commences work as a retail
11 sales clerk, or, in the case of an individual employed as a
12 retail sales clerk on the effective date of this Act, within
13 30 days of that date. The individual shall signify that he
14 or she has received the notice required by this Section by
15 signing a form stating as follows:
16 "I understand that State law prohibits the sale or
17 distribution of tobacco products to persons under 18
18 years of age and out-of-package sales of cigarettes and
19 smokeless tobacco products. I promise, as a condition of
20 my employment, to observe this law."
21 Each form signed by such individual shall indicate the date
22 of signature. The employer shall retain the form signed by
23 each individual employed as a retail sales clerk until 120
24 days after the individual has left the employer's employ.
25 (b) Any employer who fails to comply with the
26 requirements of this Section is guilty of a petty offense and
27 for the first offense shall be fined $200, for the second
28 offense in a 12-month period, $400, and for the third or
29 subsequent offense in a 12-month period, $500. An employer
30 who complies with the requirements o this Section and who has
31 in effect a training program designed to make his or her
32 employees aware of how to comply with the requirements of
33 Section 10 shall not be subject to any civil penalty or
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1 suspension, revocation, denial, or nonrenewal of a license by
2 reason of a sale to a person 18 years of age by a retail
3 sales clerk if the sales clerk had not been convicted of a
4 first offense under that Section prior to such sale.
5 Section 25. Signs.
6 (a) On and after the effective date of this Act, every
7 person who sells tobacco products at retail over the counter
8 shall post and maintain in legible condition, a sign stating
9 the following:
10 "STATE LAW STRICTLY PROHIBITS THE SALE OF TOBACCO
11 PRODUCTS TO PERSONS UNDER 18 YEARS OF AGE, THE PURCHASE
12 OF OR ATTEMPT TO PURCHASE SUCH TOBACCO PRODUCTS BY
13 PERSONS UNDER 18 YEARS OF AGE, OR THE OFFERING OF FALSE
14 PROOF OF AGE IN ORDER TO PURCHASE SUCH PRODUCTS."
15 (b) Any person who fails to place and maintain the sign
16 required by this Section 25 is guilty of a petty offense and
17 shall be fined not more than $100.
18 Section 30. Restriction on vending machines.
19 (a) No person shall sell tobacco products through a
20 vending machine unless the vending machine is located:
21 (1) In an area of factories, businesses, offices,
22 private clubs, and other places not open to the general
23 public;
24 (2) In an area that is open to the public but to
25 which persons under the age of 18 years are denied
26 access;
27 (3) In a place where alcoholic beverages are sold
28 for consumption on the premises;
29 (4) In another places, but only if the machine (i)
30 is under the continuous supervision of the owner or
31 lessee of the premises or an employee thereof, (ii) can
32 be operated only by the activation of an electronic
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1 switch by the owner or lessee of the premises or an
2 employee thereof prior to each purchase, and (iii) is
3 inaccessible to the public when the establishment is
4 closed.
5 (b) A person who violates this Section 30 is guilty of a
6 petty offense and shall be fined $200 for the first offense,
7 $400 for the second offense in a 12-month period, and $500
8 for the third or any subsequent offense in a 12-month period.
9 Section 35. Prohibition on distribution of tobacco
10 products other than in sealed packages.
11 (a) No person shall sell cigarettes or smokeless tobacco
12 products other than in an unopened package originating with
13 the manufacturer.
14 (b) A person who violates this Section 35 is guilty of a
15 petty offense and shall be fined $200 for the first offense,
16 $400 for the second offense in a 12-month period, and $500
17 for the third or any subsequent offense in a 12-month period.
18 Section 40. Licensing of tobacco product retailers.
19 (a) No person shall engage in the retail sale of tobacco
20 products over the counter or through any vending machine on
21 or after 180 days after the effective date of this Act,
22 unless the person is authorized to do so by a license issued
23 pursuant to this Section 40, or is an employee or agent of a
24 person who has been issued a license pursuant to this Section
25 40. For purposes of this Section 40, the person deemed to be
26 engaged in the retail sale of tobacco products through a
27 vending machine shall be the owner of the business
28 establishment where the vending machine is located
29 (b) The annual license fee for the retail sale of
30 tobacco products shall be as follows:
31 (1) Twenty-five dollars for each place of business
32 where tobacco products are sold over the counter at
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1 retail. A separate license shall be required for each
2 place of business where tobacco products are sold over
3 the counter at retail.
4 (2) Twenty-five dollars for each vending machine.
5 A separate license shall be required for each vending
6 machine through which tobacco products are sold.
7 (c) Every application for a license under this Section
8 40 shall be made upon a form provided by the Enforcement
9 Agency and shall set forth the name under which the applicant
10 transacts or intends to transact business, the location of
11 the place of business or vending machine for which the
12 license is to be issued, and any other identifying
13 information that the Enforcement Agency may require.
14 (d) Every license issued by the Enforcement Agency
15 pursuant to this Section 40 shall be valid for one year from
16 the date of issuance and shall be renewed upon application
17 except as otherwise provided in this Act. Upon notification
18 of a change of address, if required by the Enforcement
19 Agency, a license shall be reissued for the new address
20 without the filing of a new application.
21 (e) On or before 90 days after the effective date of
22 this Act, the Enforcement Agency shall notify every person in
23 this State who engages in the retail sale of tobacco
24 products, including retail sale through vending machines, of
25 the license requirements imposed by this Section 40.
26 (f) The Agency shall issue a license or renewal of a
27 license within 30 days of receiving a properly completed
28 application and the applicable license fee. A license or
29 renewal thereof shall not be withheld or denied; provided,
30 however, that (i) no license shall be issued for the sale of
31 tobacco products through a vending machine that dispenses any
32 product in addition to tobacco products, and (ii) no license
33 shall be issued for the sale of tobacco products through a
34 vending machine unless the applicant certifies compliance
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1 with the restrictions set forth in Section 30(a) with respect
2 to the machine for which the license is issued. No terms or
3 conditions shall be imposed by any governmental body for the
4 issuance, maintenance, or renewal of a license for the retail
5 sale of tobacco products except as specified in this Section
6 40.
7 (g) Any person who engages in the retail sale of tobacco
8 products without a license as required by this Section 40, or
9 after a license issued pursuant to this Section 40 has been
10 suspended is guilty of a business offense, for which a
11 mandatory $1,000 fine shall be imposed. A person convicted of
12 a second or subsequent violation of this Section 40 is guilty
13 of a Class B misdemeanor. No person shall be liable for more
14 than one violation per day.
15 (h) A license issued under this Section 40 is not
16 assignable and is valid only for the person in whose name it
17 is issued and for the place of business or vending machine
18 designated therein. No license shall be required and no fee
19 shall be specified for the retail sale of tobacco products
20 other than the license required and the fee specified under
21 this Section 40. License fees shall not be raised except by
22 act of the General Assembly.
23 Section 45. Suspension, revocation, denial, and
24 nonrenewal of licenses.
25 (a) Upon finding that a licensee or an employee or agent
26 of the licensee has been determined by a court of competent
27 jurisdiction to have committed during the license term 3 or
28 more violations of this Act involving the same place of
29 business or vending machine for which the license was issued,
30 the Enforcement Agency shall notify the licensee in writing,
31 served personally or by mail, that any subsequent violation
32 thereof during the license term may result in an
33 administrative action to suspend the license for a period not
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1 to exceed 30 days.
2 (b) Upon finding that a further violation has occurred
3 during the license term notwithstanding the notice provided
4 under subsection (a) of this Section 45 involving the same
5 place of business or vending machine for which the license
6 was issued, the Enforcement Agency may initiate an
7 administrative action to suspend the license. No license
8 shall be suspended except after a hearing by the Enforcement
9 Agency with reasonable notice to the licensee served by
10 registered or certified mail with return receipt requested at
11 least 5 days prior to the hearing at the last place of
12 business of the licensee and after an opportunity to appear
13 and defend. Such notice shall specify the time and place of
14 the hearing and the nature of the charges. The findings of
15 the Enforcement Agency shall be predicated upon competent
16 evidence.
17 (c) The Enforcement Agency may initiate an
18 administrative action to revoke a license that previously has
19 been suspended under subsection (b) of this Section 45 if,
20 during the license term, a further violation of this Act is
21 committed involving the same place of business or vending
22 machine for which the license was issued. No license shall
23 be suspended except after a hearing by the Enforcement Agency
24 with reasonable notice to the licensee served by registered
25 or certified mail with return receipt requested at least 5
26 days prior to the hearings at the last place of business of
27 the licensee and after an opportunity to appear and defend.
28 Such notice shall specify the time and place of the hearing
29 and the nature of the charges. The findings of the
30 Enforcement Agency shall be predicated upon competent
31 evidence.
32 (d) A copy of the order or decision of the Enforcement
33 Agency, in any proceeding before it, certified under the seal
34 of the Enforcement Agency, shall be served upon each party of
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1 record to the proceeding before the Enforcement Agency and
2 service upon any attorney of record for any such party shall
3 be deemed service upon such party. Each party appearing
4 before the Enforcement Agency shall enter his or her
5 appearance and indicate to the Enforcement Agency his or her
6 address for the service of a copy of any order, decision, or
7 notice and the mailing of a copy of an order or decision of
8 the Enforcement Agency or of a notice by the Enforcement
9 Agency in the proceeding to that party at his or her address
10 shall be deemed service upon that party. Within 20 days
11 after the service of an order or decision of the Enforcement
12 Agency upon a party to the proceeding, that party may apply
13 for a rehearing with respect to any matter determined by the
14 Enforcement Agency. If a rehearing is granted, the Agency
15 shall hold the rehearing and render a decision within 20 days
16 after the filing of the application for rehearing with the
17 secretary of the Enforcement Agency. The time for holding
18 the rehearing and tendering a decision may be extended for a
19 period not to exceed 30 days, for good cause shown, and by
20 notice in writing to all parties of interest. No action for
21 the judicial review of any decision of the Enforcement Agency
22 shall be allowed unless the party commencing the action has
23 first filed an application for a rehearing and the
24 Enforcement Agency has acted upon that application. Only one
25 rehearing may be granted by the Enforcement Agency on
26 application of any one party.
27 (e) The Enforcement Agency may refuse to grant or renew
28 a license under this Act to any person determined by a court
29 of competent jurisdiction to have committed more than 3
30 violations of this Act during the year preceding the date on
31 which the license or renewal application was filed with the
32 Enforcement Agency. Before refusing to grant or renew a
33 license under this Act, the Enforcement Agency shall give the
34 applicant an opportunity, at least 14 days after written
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1 notice is served, personally or by mail upon the applicant,
2 to show why the denial or nonrenewal would be unwarranted or
3 unjust.
4 (f) A person whose license has been suspended or revoked
5 pursuant to this Act shall pay the Enforcement Agency a fee
6 of $50 for the renewal or reissuance of the license. For
7 purposes of determining the liability of a person controlling
8 franchises or business operations in multiple locations for a
9 second or subsequent violation of this Act, each individual
10 franchise or business location shall be deemed a separate
11 entity.
12 (g) All final administrative decisions of the
13 Enforcement Agency under this Act shall be subject to
14 judicial review pursuant to the provisions of the
15 Administrative Review Law and the rules adopted pursuant to
16 the Administrative Review Law. The term "administrative
17 decision" has the same meaning as in Section 3-101 of the
18 Code of Civil Procedure.
19 Section 50. Unannounced inspections; reporting and
20 compliance.
21 (a) The Enforcement Agency shall enforce this Act in a
22 manner that can reasonably be expected to reduce the extent
23 to which tobacco products are sold or distributed to persons
24 under 18 years of age, and shall annually conduct random,
25 unannounced inspections at locations where tobacco products
26 are sold or distributed, including vending machines, to
27 ensure compliance with this Act. The Enforcement Agency may
28 enter into contracts with the following law enforcement
29 agencies, if those law enforcement agencies demonstrate a
30 pattern of enforcement of the attempt to purchase and
31 possession violation under Section 15, under which the
32 agencies will be authorized to conduct inspections, and
33 engage in enforcement actions, as provided in this Section:
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1 (1) the Illinois State Police;
2 (2) the sheriff of a county; or
3 (3) the head of the police department or police
4 force of any county, city, town, or village.
5 (b) The program of inspections authorized under this
6 Section 50 shall cover a range of licensed establishments
7 that reflects the distribution of the population under 18
8 years of age throughout the State where persons under 18
9 years of age are most likely to attempt to purchase tobacco
10 products. Licensed establishments shall not be selected for
11 inspection on the basis of evidence concerning prior
12 violations. If the Enforcement Agency conducts an inspection
13 at an establishment that does not result in evidence of a
14 violation, the Enforcement Agency shall not conduct another
15 inspection at the same establishment for a period of not less
16 than one year.
17 (c) For purposes of inspections and enforcement actions
18 undertaken pursuant to this Section 50, persons under 18
19 years of age may be enlisted to attempt to purchase or to
20 purchase tobacco products, provided that such persons shall
21 have the prior written consent of a parent or legal guardian,
22 and provided further that such persons shall be directly
23 supervised during the conduct of each inspection or
24 enforcement action by an adult employee of the Enforcement
25 Agency or by the Illinois State Police, the sheriff of a
26 county, county police department, the head of the police
27 department or police force of any county, city, town, or
28 village, or any officer or employee thereof. No person under
29 18 years of age may misrepresent his or her age for the
30 purpose of purchasing or attempting to purchase tobacco
31 products. If questioned about his or her age during an
32 attempt to purchase or receive tobacco products, a person
33 under 18 years of age shall state his or her true age and
34 that he or she is under 18 years of age. A person under 18
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1 years of age shall not be used in any inspection or
2 enforcement action at an establishment in which that person
3 is a regular customer. A photograph or video recording of
4 any person under 18 years of age assisting in an inspection
5 or enforcement action shall be taken prior to and after each
6 inspection or enforcement action, or shift of inspections or
7 enforcement actions, and retained for 2 years. The
8 appearance of a person under 18 years of age participating in
9 an inspection or enforcement action shall not be altered.
10 (d) The owner or an authorized employee of an
11 establishment where an inspection or enforcement action under
12 this Section 50 takes place shall be informed of the results
13 of the inspection or enforcement action not more than 72
14 hours after the inspection or enforcement action is
15 completed. The employee of the department or law enforcement
16 officer who directly supervised an inspection conducted
17 pursuant to this Section shall prepare a written report
18 within 7 days after completion. A copy of that report shall
19 be delivered to the owner of the establishment where the
20 inspection took place within 14 days of completion. The
21 report shall include the name and position of the person who
22 directly supervised the inspection, the age and date of birth
23 of the person under 18 years of age who assisted with the
24 inspection, the date and time of the inspection, a reasonably
25 detailed description of the inspection, and the result of the
26 inspection. Any use of persons under 18 years of age other
27 than that permitted by this Section 50 to measure compliance
28 with or to enforce Section 10 or any other prohibitions of
29 like or similar import shall be unlawful and the person or
30 persons responsible for such use shall be subject to the
31 penalties prescribed for violation of Section 10.
32 (e) The Enforcement Agency shall compile the results of
33 inspections performed pursuant to this Section 50, and shall
34 prepare an annual report reflecting such results for
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1 submission with the State's application for federal block
2 grants for substance abuse prevention and treatment in
3 accordance with the requirements of Section 1926 of the
4 federal Public Health Services Act (42 U.S.C. 300x-26).
5 (f) Failure to comply with any requirement of
6 subsections (a) through (d) of this Section 50 during an
7 inspection or enforcement action shall be an affirmative
8 defense to any action for violation of Section 10 brought as
9 a result of such inspection or enforcement action.
10 Information gathered during an inspection or enforcement
11 action that was conducted in a manner not in accordance with
12 this Section shall not be admitted as evidence in any action
13 and shall not be used in any report, filing, application, or
14 publication prepared by the Enforcement Agency or any other
15 agency of the State, including any report under Section 1926
16 of the federal Public Health Services Act (42 U.S.C.
17 300x-26).
18 (g) The Enforcement Agency shall negotiate annually with
19 the United States Secretary of Health and Human Services
20 interim performance targets and the time frame for achieving
21 the ultimate performance objective as provided in 45 C.F.R.
22 96.130. The Enforcement Agency shall not agree to any
23 interim performance target or any such time frame that is not
24 realistic and attainable, and shall strive consistent with
25 this Section 50 and with Section 10 to ensure continued
26 federal funding for the State's substance abuse programs.
27 (h) To support inspections and enforcement actions
28 authorized under this Section, the Enforcement Agency may
29 expend funds from the following to the full extent permitted
30 by federal law:
31 (1) The primary prevention set-aside portion of
32 federal block grants for substance abuse prevention and
33 treatment (45 C.F.R. 96.124(b)(1));
34 (2) The Centers for Disease Control's Preventive
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1 Health and Health Services Block Grant (42 U.S.C. par.
2 300-w et seq.); and
3 (3) Any other available source of federal funds.
4 Section 55. Offset for enforcement and inspection.
5 License fees and penalties collected pursuant to this Act
6 shall be distributed to the Enforcement Agency for the
7 administration and enforcement of this Act.
8 Section 60. Preemption.
9 (a) Except as provided in subsection (b) of this
10 Section, a home rule or non-home rule unit of local
11 government in this State shall not have the power or
12 authority to enact or enforce any laws, ordinances, rules, or
13 regulations concerning the sale, distribution, display, use,
14 advertising or promotion of tobacco products. Except as
15 provided in subsection (b) of this Section, the power and
16 authority to regulate the sale, distribution, display, use
17 advertising, and promotion of tobacco products is an
18 exclusive State power or function. This Act is a denial and
19 limitation of home rule powers and functions under subsection
20 (h) of Section 6 of Article VII of the Illinois Constitution.
21 (b) Subsection (a) shall not preclude a home rule or
22 non-home rule unit from continuing to require a license or
23 permit as a condition of selling tobacco products pursuant to
24 an ordinance enacted prior to the effective date of this Act
25 for the sole purpose of collecting the license or permit fee;
26 provided, that the fee imposed to obtain such permit or
27 license may not exceed the fee in effect on the effective
28 date of this Act.
29 Section 150. The Cigarette Tax Act is amended by
30 changing Section 4 as follows:
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1 (35 ILCS 130/4) (from Ch. 120, par. 453.4)
2 Sec. 4. No person may engage in business as a distributor
3 of cigarettes in this State within the meaning of the first 2
4 definitions of distributor in Section 1 of this Act without
5 first having obtained a license therefor from the Department.
6 Application for license shall be made to the Department in
7 form as furnished and prescribed by the Department. Each
8 applicant for a license under this Section shall furnish to
9 the Department on the form signed and verified by the
10 applicant the following information:
11 (a) The name and address of the applicant;
12 (b) The address of the location at which the applicant
13 proposes to engage in business as a distributor of cigarettes
14 in this State;
15 (c) Such other additional information as the Department
16 may lawfully require by its rules and regulations.
17 The annual license fee payable to the Department for each
18 distributor's license shall be $250. The purpose of such
19 annual license fee is to defray the cost, to the Department,
20 of coding, serializing or coding and serializing, cigarette
21 tax stamps, and to assist the Enforcement Agency defined in
22 Section 5(2) of the Illinois Underage Purchase, Possession,
23 and Sales Prevention Act of 1999 with costs associated with
24 the enforcement of that Act. Each applicant for license shall
25 pay such fee to the Department at the time of submitting his
26 application for license to the Department. Such fee shall be
27 divided equally between the Department and the Enforcement
28 Agency defined in Section 5(2) of the Illinois Underage
29 Purchase, Possession, and Sales Prevention Act of 1999. The
30 portion allocable to the Enforcement Agency shall be
31 transferred by the Department to the Enforcement Agency.
32 Every applicant who is required to procure a
33 distributor's license shall file with his application a joint
34 and several bond. Such bond shall be executed to the
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1 Department of Revenue, with good and sufficient surety or
2 sureties residing or licensed to do business within the State
3 of Illinois, in the amount of $2,500, conditioned upon the
4 true and faithful compliance by the licensee with all of the
5 provisions of this Act. Such bond, or a reissue thereof, or a
6 substitute therefor, shall be kept in effect during the
7 entire period covered by the license. A separate application
8 for license shall be made, a separate annual license fee
9 paid, and a separate bond filed, for each place of business
10 at which a person who is required to procure a distributor's
11 license under this Section proposes to engage in business as
12 a distributor in Illinois under this Act.
13 The following are ineligible to receive a distributor's
14 license under this Act:
15 (1) a person who is not of good character and reputation
16 in the community in which he resides;
17 (2) a person who has been convicted of a felony under
18 any Federal or State law, if the Department, after
19 investigation and a hearing, if requested by the applicant,
20 determines that such person has not been sufficiently
21 rehabilitated to warrant the public trust;
22 (3) a corporation, if any officer, manager or director
23 thereof, or any stockholder or stockholders owning in the
24 aggregate more than 5% of the stock of such corporation,
25 would not be eligible to receive a license under this Act for
26 any reason;
27 (4) a person previously licensed as a distributor or
28 wholesaler who has been convicted of a second offense under
29 Section 35 of the Illinois Underage Purchase, Possession, and
30 Sales Prevention Act of 1999.
31 The Department, upon receipt of an application, license
32 fee and bond in proper form, from a person who is eligible to
33 receive a distributor's license under this Act, shall issue
34 to such applicant a license in form as prescribed by the
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1 Department, which license shall permit the applicant to which
2 it is issued to engage in business as a distributor at the
3 place shown in his application. All licenses issued by the
4 Department under this Act shall be valid for not to exceed
5 one year after issuance unless sooner revoked, canceled or
6 suspended as provided in this Act. No license issued under
7 this Act is transferable or assignable. Such license shall be
8 conspicuously displayed in the place of business conducted by
9 the licensee in Illinois under such license.
10 (Source: P.A. 78-255.)
11 Section 160. The Cigarette Use Tax Act is amended by
12 changing Section 4 as follows:
13 (35 ILCS 135/4) (from Ch. 120, par. 453.34)
14 Sec. 4. A distributor maintaining a place of business in
15 this State, if required to procure a license or allowed to
16 obtain a permit as a distributor under the Cigarette Tax Act,
17 need not obtain an additional license or permit under this
18 Act, but shall be deemed to be sufficiently licensed or
19 registered by virtue of his being licensed or registered
20 under the Cigarette Tax Act.
21 Every distributor maintaining a place of business in this
22 State, if not required to procure a license or allowed to
23 obtain a permit as a distributor under the Cigarette Tax Act,
24 shall make a verified application to the Department (upon a
25 form prescribed and furnished by the Department) for a
26 license to act as a distributor under this Act. In completing
27 such application, the applicant shall furnish such
28 information as the Department may reasonably require.
29 The annual license fee payable to the Department for each
30 distributor's license shall be $250. The purpose of such
31 annual license fee is to defray the cost, to the Department,
32 of coding, serializing, or coding and serializing cigarette
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1 tax stamps, and to assist the Enforcement Agency defined in
2 Section 5(2) of the Illinois Underage Purchase, Possession,
3 and Sales Prevention Act of 1999 with costs associated with
4 the enforcement of that Act. The applicant for license shall
5 pay such fee to the Department at the time of submitting the
6 application for license to the Department. Such fee shall be
7 divided equally between the Department and the Enforcement
8 Agency defined in Section 5(2) of the Illinois Underage
9 Purchase, Possession, and Sales Prevention Act of 1999. The
10 portion allocable to the Enforcement Agency shall be
11 transferred by the Department to the Enforcement Agency.
12 Such applicant shall file, with his application, a joint
13 and several bond. Such bond shall be executed to the
14 Department of Revenue, with good and sufficient surety or
15 sureties residing or licensed to do business within the State
16 of Illinois, in the amount of $2,500, conditioned upon the
17 true and faithful compliance by the licensee with all of the
18 provisions of this Act. Such bond, or a reissue thereof, or a
19 substitute therefor, shall be kept in effect during the
20 entire period covered by the license. A separate application
21 for license shall be made, a separate annual license fee
22 paid, and a separate bond filed, for each place of business
23 at or from which the applicant proposes to act as a
24 distributor under this Act and for which the applicant is not
25 required to procure a license or allowed to obtain a permit
26 as a distributor under the Cigarette Tax Act.
27 The following are ineligible to receive a distributor's
28 license under this Act:
29 (1) a person who is not of good character and reputation
30 in the community in which he resides;
31 (2) a person who has been convicted of a felony under
32 any Federal or State law, if the Department, after
33 investigation and a hearing, if requested by the applicant,
34 determines that such person has not been sufficiently
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1 rehabilitated to warrant the public trust;
2 (3) a corporation, if any officer, manager or director
3 thereof, or any stockholder or stockholders owning in the
4 aggregate more than 5% of the stock of such corporation,
5 would not be eligible to receive a license hereunder for any
6 reason;
7 (4) a person previously licensed as a distributor or
8 wholesaler who has been convicted of a second offense under
9 Section 35 of the Illinois Underage Purchase, Possession, and
10 Sales Prevention Act of 1999.
11 Upon approval of such application and bond and payment of
12 the required annual license fee, the Department shall issue a
13 license to the applicant. Such license shall permit the
14 applicant to engage in business as a distributor at or from
15 the place shown in his application. All licenses issued by
16 the Department under this Act shall be valid for not to
17 exceed one year after issuance unless sooner revoked,
18 canceled or suspended as in this Act provided. No license
19 issued under this Act is transferable or assignable. Such
20 license shall be conspicuously displayed at the place of
21 business for which it is issued.
22 (Source: P.A. 78-255.)
23 Section 180. The Liquor Control Act of 1934 is amended
24 by changing Section 3-12 as follows:
25 (235 ILCS 5/3-12) (from Ch. 43, par. 108)
26 Sec. 3-12. (a) The State commission shall have the
27 following powers, functions and duties:
28 (1) To receive applications and to issue licenses to
29 manufacturers, foreign importers, importing distributors,
30 distributors, non-resident dealers, on premise consumption
31 retailers, off premise sale retailers, special event retailer
32 licensees, special use permit licenses, auction liquor
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1 licenses, brew pubs, caterer retailers, non-beverage users,
2 railroads, including owners and lessees of sleeping, dining
3 and cafe cars, airplanes, boats, brokers, and wine maker's
4 retail licensees in accordance with the provisions of this
5 Act, and to suspend or revoke such licenses upon the State
6 commission's determination, upon notice after hearing, that a
7 licensee has violated any provision of this Act or any rule
8 or regulation issued pursuant thereto and in effect for 30
9 days prior to such violation.
10 In lieu of suspending or revoking a license, the
11 commission may impose a fine, upon the State commission's
12 determination and notice after hearing, that a licensee has
13 violated any provision of this Act or any rule or regulation
14 issued pursuant thereto and in effect for 30 days prior to
15 such violation. The fine imposed under this paragraph may
16 not exceed $500 for each violation. Each day that the
17 activity, which gave rise to the original fine, continues is
18 a separate violation. The maximum fine that may be levied
19 against any licensee, for the period of the license, shall
20 not exceed $20,000. The maximum penalty that may be imposed
21 on a licensee for selling a bottle of alcoholic liquor with a
22 foreign object in it or serving from a bottle of alcoholic
23 liquor with a foreign object in it shall be the destruction
24 of that bottle of alcoholic liquor for the first 10 bottles
25 so sold or served from by the licensee. For the eleventh
26 bottle of alcoholic liquor and for each third bottle
27 thereafter sold or served from by the licensee with a foreign
28 object in it, the maximum penalty that may be imposed on the
29 licensee is the destruction of the bottle of alcoholic liquor
30 and a fine of up to $50.
31 (2) To adopt such rules and regulations consistent with
32 the provisions of this Act which shall be necessary to carry
33 on its functions and duties to the end that the health,
34 safety and welfare of the People of the State of Illinois
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1 shall be protected and temperance in the consumption of
2 alcoholic liquors shall be fostered and promoted and to
3 distribute copies of such rules and regulations to all
4 licensees affected thereby.
5 (3) To call upon other administrative departments of the
6 State, county and municipal governments, county and city
7 police departments and upon prosecuting officers for such
8 information and assistance as it deems necessary in the
9 performance of its duties.
10 (4) To recommend to local commissioners rules and
11 regulations, not inconsistent with the law, for the
12 distribution and sale of alcoholic liquors throughout the
13 State.
14 (5) To inspect, or cause to be inspected, any premises
15 in this State where alcoholic liquors are manufactured,
16 distributed, warehoused, or sold.
17 (5.1) Upon receipt of a complaint or upon having
18 knowledge that any person is engaged in business as a
19 manufacturer, importing distributor, distributor, or retailer
20 without a license or valid license, to notify the local
21 liquor authority, file a complaint with the State's
22 Attorney's Office of the county where the incident occurred,
23 or initiate an investigation with the appropriate law
24 enforcement officials.
25 (5.2) To issue a cease and desist notice to persons
26 shipping alcoholic liquor into this State from a point
27 outside of this State if the shipment is in violation of this
28 Act.
29 (6) To hear and determine appeals from orders of a local
30 commission in accordance with the provisions of this Act, as
31 hereinafter set forth. Hearings under this subsection shall
32 be held in Springfield or Chicago, at whichever location is
33 the more convenient for the majority of persons who are
34 parties to the hearing.
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1 (7) The commission shall establish uniform systems of
2 accounts to be kept by all retail licensees having more than
3 4 employees, and for this purpose the commission may classify
4 all retail licensees having more than 4 employees and
5 establish a uniform system of accounts for each class and
6 prescribe the manner in which such accounts shall be kept.
7 The commission may also prescribe the forms of accounts to be
8 kept by all retail licensees having more than 4 employees,
9 including but not limited to accounts of earnings and
10 expenses and any distribution, payment, or other distribution
11 of earnings or assets, and any other forms, records and
12 memoranda which in the judgment of the commission may be
13 necessary or appropriate to carry out any of the provisions
14 of this Act, including but not limited to such forms, records
15 and memoranda as will readily and accurately disclose at all
16 times the beneficial ownership of such retail licensed
17 business. The accounts, forms, records and memoranda shall
18 be available at all reasonable times for inspection by
19 authorized representatives of the State commission or by any
20 local liquor control commissioner or his or her authorized
21 representative. The commission, may, from time to time,
22 alter, amend or repeal, in whole or in part, any uniform
23 system of accounts, or the form and manner of keeping
24 accounts.
25 (8) In the conduct of any hearing authorized to be held
26 by the commission, to examine, or cause to be examined, under
27 oath, any licensee, and to examine or cause to be examined
28 the books and records of such licensee; to hear testimony and
29 take proof material for its information in the discharge of
30 its duties hereunder; to administer or cause to be
31 administered oaths; and for any such purpose to issue
32 subpoena or subpoenas to require the attendance of witnesses
33 and the production of books, which shall be effective in any
34 part of this State.
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1 Any Circuit Court may by order duly entered, require the
2 attendance of witnesses and the production of relevant books
3 subpoenaed by the State commission and the court may compel
4 obedience to its order by proceedings for contempt.
5 (9) To investigate the administration of laws in
6 relation to alcoholic liquors in this and other states and
7 any foreign countries, and to recommend from time to time to
8 the Governor and through him or her to the legislature of
9 this State, such amendments to this Act, if any, as it may
10 think desirable and as will serve to further the general
11 broad purposes contained in Section 1-2 hereof.
12 (10) To adopt such rules and regulations consistent with
13 the provisions of this Act which shall be necessary for the
14 control, sale or disposition of alcoholic liquor damaged as a
15 result of an accident, wreck, flood, fire or other similar
16 occurrence.
17 (11) To develop industry educational programs related to
18 responsible serving and selling, particularly in the areas of
19 overserving consumers and illegal underage purchasing and
20 consumption of alcoholic beverages.
21 (12) To develop and maintain a repository of license and
22 regulatory information.
23 (13) (Blank) On or before January 15, 1994, the
24 Commission shall issue a written report to the Governor and
25 General Assembly that is to be based on a comprehensive study
26 of the impact on and implications for the State of Illinois
27 of Section 1926 of the Federal ADAMHA Reorganization Act of
28 1992 (Public Law 102-321). This study shall address the
29 extent to which Illinois currently complies with the
30 provisions of P.L. 102-321 and the rules promulgated pursuant
31 thereto.
32 As part of its report, the Commission shall provide the
33 following essential information:
34 (i) the number of retail distributors of tobacco
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1 products, by type and geographic area, in the State;
2 (ii) the number of reported citations and
3 successful convictions, categorized by type and location
4 of retail distributor, for violation of the Sale of
5 Tobacco to Minors Act and the Smokeless Tobacco
6 Limitation Act;
7 (iii) the extent and nature of organized
8 educational and governmental activities that are intended
9 to promote, encourage or otherwise secure compliance with
10 any Illinois laws that prohibit the sale or distribution
11 of tobacco products to minors; and
12 (iv) the level of access and availability of
13 tobacco products to individuals under the age of 18.
14 To obtain the data necessary to comply with the
15 provisions of P.L. 102-321 and the requirements of this
16 report, the Commission shall conduct random, unannounced
17 inspections of a geographically and scientifically
18 representative sample of the State's retail tobacco
19 distributors.
20 The Commission shall consult with the Department of
21 Public Health, the Department of Human Services, the Illinois
22 State Police and any other executive branch agency, and
23 private organizations that may have information relevant to
24 this report.
25 The Commission may contract with the Food and Drug
26 Administration of the U.S. Department of Health and Human
27 Services to conduct unannounced investigations of Illinois
28 tobacco vendors to determine compliance with federal laws
29 relating to the illegal sale of cigarettes and smokeless
30 tobacco products to persons under the age of 18.
31 (14) The Commission shall receive and issue licenses to
32 persons engaged in the retail sales of tobacco products over
33 the counter or through any vending machine, as specified in
34 Section 40 of the Illinois Underage Purchase, Possession, and
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1 Sales Prevention Act of 1999. The Commission shall enforce
2 the Illinois Underage Purchase Possession, and Sales
3 Prevention Act of 1999, conduct the inspections described in
4 Section 45 of that Act, and submit the report required by
5 Section 1926 of the federal Public Health Service Act (42
6 U.S.C. 300x-26). The Commission shall not promulgate any
7 rules with respect to the Illinois Underage Purchase,
8 Possession, and Sales Prevention Act of 1999.
9 Notwithstanding any other provision of this Act, and except
10 as specifically provided in Sections 40 and 45 of the
11 Illinois Underage Purchase, Possession, and Sales Prevention
12 Act of 1999, the Commission shall not exercise any authority
13 with respect to the licensing of sellers of tobacco products,
14 the sale or distribution of such products, or the inspection
15 of establishments that sell such products at retail.
16 (b) On or before April 30, 1999, the Commission shall
17 present a written report to the Governor and the General
18 Assembly that shall be based on a study of the impact of this
19 amendatory Act of 1998 on the business of soliciting,
20 selling, and shipping alcoholic liquor from outside of this
21 State directly to residents of this State.
22 As part of its report, the Commission shall provide the
23 following information:
24 (i) the amount of State excise and sales tax
25 revenues generated as a result of this amendatory Act of
26 1998;
27 (ii) the amount of licensing fees received as a
28 result of this amendatory Act of 1998;
29 (iii) the number of reported violations, the number
30 of cease and desist notices issued by the Commission, the
31 number of notices of violations issued to the Department
32 of Revenue, and the number of notices and complaints of
33 violations to law enforcement officials.
34 (Source: P.A. 89-507, eff. 7-1-97; 90-9, eff. 7-1-97; 90-432,
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1 eff. 1-1-98; 90-655, eff. 7-30-98; 90-739, eff. 8-13-98.)
2 (720 ILCS 675/Act rep.)
3 Section 300. The Sale of Tobacco to Minors Act is
4 repealed.
5 (720 ILCS 680/Act rep.)
6 Section 400. The Smokeless Tobacco Limitation Act is
7 repealed.
8 Section 99. Effective date. This Act takes effect upon
9 becoming law.".